GMA (Grocery Manufacturers Association) SheSpeaks Shopper Marketing Study from November 2009 in association with Booz & Co.

1. Shopper Marketing: Unleashing the Next Wave of Value November 3 rd , 2009 MSM

5. How we performed the survey Online Survey and Discussion Group Methodology Targeting / Screening 1 3 Shopping Trip Planned 4 Feedback: 2 Shopper Enrollment & Discussion 5 Insights

7. Focus of this year’s shopper marketing study Shopper Insights Across the Full Path- to-Purchase Shopper Marketing as a Strategic Capability Path Forward for Measurement 1 2 3

8. Many moments of truth along Path to Purchase In-Store At Home Path to Purchase On the Go Mobile Interactive Vending Alternative Out of Home Video Displays Interactive Media Signage on Shelf In-store Coupons Displays Sampling Programs Relationship Marketing (e.g., email, SMS) Paid Media Product Placement Search before you buy

9. Shopper insights developed based on when the brand selection is made Types of Purchases In-Store Brand On List, PURCHASED In Store Brand On List, SWITCHED In Store Item On List, Brand SELECTED In Store Item Not On List, IMPULSE Purchase

10. Significant room to influence before and in-store Division of Purchases In-store (% of Total Items Purchased) 29% 86% 85% 85% % shoppers more influenced by in-store factors Source: Booz & Company, SheSpeaks survey of 2,200 shoppers completing post-shopping survey * * Brand On List, Switched In Store *

11. Most Important Factor For Choosing Retail Location (% of Total Respondents) Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey) "I could go to a closer store, but they don't have as wide of a selection for the brands I want" “ I like ‘my’ local store because I know where everything is, and I like the depth of product choices they have.” “ I find the experience so much more pleasurable because there is a wider selection, higher quality brands, and a higher level of clientele.” Beyond price, product selection and convenience are key for choosing a retailer 51% Price Product Selection Store Ads / Circular 4% Habit 5% Convenience / Location 17% 19%

12. Brand preference and coupons drive out-of-store d Out-of-store Influences (% of Total Respondents, Top 2 Box) Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey) % Shoppers Doing Research Before Going to Store (% of Respondents by Category) % Shoppers Making Lists (% of Total Respondents) * * * Media – Content * Media – Paid * Friends/ Family * * * * * Mental/ rough list * *

13. More than half of shoppers are doing research online before they shop Example Focus Areas for Digital Shopper Marketing Digital Coupons “ I spend at least 30 minutes every day searching through money-saving blogs for printable coupons, deals, etc ” Manufacturer Sites / Apps “ I go to multiple sites including online manufacturers' websites before I shop.” “ I like to see my Facebook friends' recommendations on items. I trust their opinions.” Social Networking

14. While price is clearly important… “ I like to look at all of the brands they have and then look at prices and how good they are.” “ I study the circulars and compare them with my coupons to determine where to shop each week.” “ If I see a good sale, then I will buy it even though its not on my shopping list.” Source: Booz & Company, SheSpeaks survey of 2,200 shoppers completing post-shopping survey; Online Discussion Forums * * * Which is Most Influential to Purchase Decisions (% of Total Respondents)

15. … Shopper marketing is key to differentiate as shoppers want to buy the brands they love d Source: Booz & Company, SheSpeaks survey of 2,200 shoppers (completing post-shopping survey) Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey) * * * * * * * * * * * * * 27% In-store Influences (% of total respondents influenced) % Preferring Brand Over Price (Top 2 box, neutral agreement) * * * * * * * * * * * * * *

16. Effectiveness varies based on brand objectives Source: Booz & Company, SheSpeaks survey of 2,200 shoppers (completing post-shopping survey) Shelf Signage 23% Brand Recognized 36% Product Benefits on Package 22% Item on List, Brand Selected in Store (% of total respondents influenced) Product Benefits on Package 27% Everything as Expected 63% Nothing Better 20% Brand on List, Purchased in Store (% of total respondents influenced) Brand on List, Switched in Store (% of total respondents influenced) Brand Recognized 12% In-Store Coupons 16% Shelf Signage 11% Product Display 18% Shelf Signage 20% Product Benefits on Package 14% Item Not on List, Impulse Purchase (% of total respondents influenced)

18. Focus of this year’s shopper marketing study Shopper Insights Across the Full Path- to-Purchase Shopper Marketing as a Strategic Capability Path Forward for Measurement 1 2 3

20. Unlocking greater value requires managing as a strategic capability Shopper Marketing as a Strategic Capability Shopper Insights Measurement Advertising Consumer Promotions Trade Promotions Merchandising/ In-Store Ads Relationship Marketing Out-of-Store In-Store Analytics Process Technology Organization

21. Focus of this year’s shopper marketing study Shopper Insights Across the Full Path- to-Purchase Shopper Marketing as a Strategic Capability Path Forward for Measurement 1 2 3

24. Thank You Matt Egol Partner , Booz & Company Consumer, Media & Digital (212) 551-6716 Email : [email_address] Twitter: @mattegol Aliza Freud Founder & CEO, SheSpeaks (212) 830-9882 Email: [email_address] Twitter: @shespeaking